With Asda, there are two options open to you

Plus the ability to have your over 50s life policy assigned to a dedicated funeral plan. What’s this?

Asda Over 50s Life Insurance helps you put money aside to help those you leave behind to either pay for a funeral outright or help towards its costs.

As an example, Olivia is a 61 year old housewife and a non-smoker. The premiums and amounts of cover used here are to help you understand the difference between the two premium options only. They may not be the same as your premiums and amounts of cover.

Option 1 – Our Uncapped Over 50s Life Cover

Olivia pays £20 a month, which means her plan will provide her with cover of £4,365. This option means that Olivia will pay premiums for a maximum of 30 years, up to age 91. If she dies before she reaches 78 years and 7 months, the amount paid out will be more than she has paid in total in premiums (£20 (monthly premium) x 211 (number of months to age 78 years and 7 months) = £4,220).

However, she will still need to keep paying premiums until she is 91- so if she lives beyond 78 and 7 months, then she will have paid more in premiums than her chosen amount of cover. So although Olivia gets a higher amount of cover compared to if she had chosen to cap her premiums, there is a risk she will pay more in premiums than her chosen amount of cover.

Option 2 – Our Capped Over 50s Life Cover

Olivia chooses to cap her premiums at £20 a month, so her plan will provide her with cover of £2,636. This means Olivia stops paying premiums once they reach her chosen total amount of cover. If she dies at any point before she reaches 72, the amount paid out will be more than she has paid in total in premiums (£20 (monthly premium) x 12 (months in a year) x 11 years = £2,640).

Although Olivia gets a lower amount of cover than she would if she'd chosen not to cap her premiums - she will stop paying monthly premiums the month before her 72nd birthday, so she will never pay more in premiums than her chosen amount of cover.

On both options, you can choose to assign your cover to a dedicated funeral plan and get an extra £300 towards your funeral at no extra cost. Really? Tell me more.